2.8 Accurate data on the cost of procuring PFI projects are scarce as local authorities record costs differently, but estimates compiled from data provided by 16 local authorities indicate that the internal and advisory costs of housing projects are in line with other PFI sectors. The highest cost we identified was just over £3 million but costs vary considerably between local authorities and will be affected by the complexity and size of projects. In most cases the majority of the total cost is on advisers, which is again typical for PFI. Although costs are similar to other PFI sectors, some local authorities and private sector providers perceived procurement costs for a PFI project can be higher than they need be and that the process cost significantly more than they expected.
2.9 The private sector bidders also have significant costs. Providers told us that they spend between £1 and £3 million on a successful bid although 70 per cent of the winning bidder's eligible costs are refunded by the public sector as part of the annual payments under the contract. Losing bidders do not have any costs refunded.